COMMERCIAL LENDING NEWSLETTER
You are receiving this letter because you are one of my Spartans - my top-producing brokers and investor clients - of whom I am allowed to have 300. Removal instructions are below. Today we'll talk about fix and flip loans. We also have lots of cute, clean jokes, some funny pics, and a hilarious video taken on Southwest Airlines.
Joke Du Jour
Recently, I called to make reservations on a small charter plane that departs from Teterboro Airport in New Jersey. I knew that I would be flying in a very small plane, so I was not surprised when the clerk said, "The plane is very full with baggage and passengers." Then she asked, "How much do you weigh, sir?" Not thinking clearly, I answered, "With or without clothes?" "Well," said the clerk, "how do you intend to travel?"
Meet Mrs. Captain Jack Sparrow
Now Hot-To-Trot To Make Fix and Flip Loans
Blackburne & Sons is making a huge push into fix and flip lending. Of course we will still make our private money permanent loans on commercial properties nationwide; but we are now also making fix and flip loans across the country.
Please click here to submit a fix and flip loan or a hard money commercial loan or call me, Tom Blackburne, at (574) 210-6686.
"I saw that one hundred years ago this month, Albert Einstein presented his theory of General Relativity, which explains how gravity works. And it also marks the last time someone actually meant it when they said, 'Way to go, Einstein.'" -- Jimmy Fallon
Still Making Private Money Commercial Permanent Loans Nationwide From $100,000 to $3.5MM
Do you need a commercial lender who will actually lend up to 75% LTV? Blackburne & Sons has decided to compete against banks by offering a higher LTV.
Do you need a lender who will also look at the borrower's global income - income from salaries, other investments, etc.? Do you need a lender who will allow the seller to carry back a second mortgage? Does your client have a balloon payment coming due on his commercial property? Has your bank offered him a discounted pay-off? Does your borrower have less-than-stellar credit? Is your client's company losing money? Is your borrower a foreign national? Do you need a non-recourse loan? Do you need a commercial loan with no prepayment penalty? Is your client's commercial property partially vacant? Do all of your commercial leases run out in the next 18 months? Do you need a lender who will allow a negative cash flow? Do you need a loan against a portfolio of rental houses?
And don't forget, we will quickly and happily issue you a written Loan Approval Letter - at no charge - that you can use as a fallback and to lure cheaper lenders. After all, everyone wants to lend to you if you already have a commitment. Here is our latest rate sheet.
Blackburne & Sons is looking for commercial real estate loans that are not quite clean enough for a bank. Please click here to submit a hard money commercial loan or call me, Tom Blackburne, at (574) 210-6686.
Wedding Cake Joke
"A piece of wedding cake from Donald and Melania Trump's wedding is currently up for auction. The 12-year-old piece of cake is being marketed as a rare collector's item. This piece of cake is expected to go for over $1,000. What a rip-off. If I want to eat a 12-year-old piece of cake, I'll go to the liquor store and buy some Twinkies, like a normal person." -- James Corden
Fix and Flip Financing
There are two important ratios to understand when originating fix and flip deals - the Down Payment to Purchase Price Ratio and the After Repair Loan-to-Value Ratio.
Fix and flip lenders, including Blackburne & Sons, are extremely aggressive in terms of loan size. They will lend the borrower 80% to 85% of the purchase price of the dilapidated house plus 100% of the cost of repair plus a four-month interest reserve. In other words, the Down Payment to Purchase Price Ratio must only exceed 15% to 20%. Wow, that is some incredible leverage!
The second fix and flip ratio addresses the profitability of the proposed renovation. Will the developer make money on the deal? Will the fix and flip lender have enough equity to protect itself?
The After Repair Value (ARV) is the value of the house after it has been renovated. Most fix and flip lenders will require that the After Repair Loan-to-Value Ratio be less than 65% to 70%. If the project enjoys lots of potential profit, it should easily satify this ratio..
Yesterday I wrote a good-sized article that explains all about fix and flip financing. This article will make you near-expert.
I have also written two blog articles on fix and flip financing that will greatly increase your confidence when quoting a fix and flip loan. Guys and ladies, all of my 400 blog articles are free training lessons in commercial real estate finance. If you want to become a more successful commercial mortgage broker, be sure to subscribe to my free blog.
Some people really love Christmas, but I love Thanksgiving. Last year I had my chance to do the traditional thing of shooting my own turkey for Thanksgiving. Man, you should have seen the people scatter in the meat department!
Free Copy of The Blackburne List
The Blackburne List is a list of over 2,500 commercial lenders located nationwide. We just spent almost $30,000 and three months updating this list.
The Blackburne List is available for purchase for just $79.95. Is money tight? You can also buy one of our three Regional Lists (750+ lenders) for just $39.95. But why spend money at all?
We will trade you one of our three Regional Lists for the contact information of just one banker making commercial real estate loans. If you refer us three bankers, you will own the list for all three regions. Together you will own the entire Blackburne List.
There is another way that you can access The Blackburne List. Our newest portal, CommercialMortgage.com, is an online way to search the entire Blackburne List for the 30 lenders most suitable to make your commercial loan.
CommercialMortgage.com ("CMDC") is also 100% free!
A man brings his wife a glass of water and two aspirins. She
looks surprised and says, "I don't have a headache!"
He says, "Aha!"
Get a Free Commercial Mortgage Marketing Course
We sell this course separately for $199. Click here to get your free commercial mortgage marketing course.
After eight days of backpacking with my wife, Linda, we were looking pretty scruffy. One morning she came to breakfast in a baseball cap, her shoulder-length hair sticking out at odd angles. "Terry," she said, "does my hair make me look like a water buffalo?" I thought for a moment, then said, "If I tell you the truth, do you promise not to charge?”
Learn Commercial Real Estate Finance - Nine Hour Video Training Course - Just $549
It would be a lot easier to close your commercial deals if you actually knew the subject matter. Finally learn this stuff.
Want to get this $549 course for free? Get me all of the contact information - address, email, etc. - on ten bankers, and I will send you the course for free. Guys, the ONLY acceptable bankers are loan officers working for FDIC-insured commercial banks or credit unions. Got ten? Write to me personally, George Blackburne III (the old man and founder) for this special trade.
Hey There, Big Boy. Do You Come Here Often?
It's the Loan Servicing Income, Folks
The loan servicing portfolio for Blackburne & Sons just broke $53 million this quarter. Since our average loan servicing fee is two percent annually, that means we earn $1 million per year for servicing just 250 loans. How would you like to walk in the door on the first of each month knowing that you will earn at least $83,000? Find your own private mortgage investors.
On the first day of school, the kindergarten teacher said, "If anyone has to go to the bathroom, hold up one or two fingers." A little voice from the back of the room asked, "How will that help?"
Buy Both Training Courses For Just $849
To order, please on contact Tom Blackburne at 574-210-6686 or firstname.lastname@example.org.
Need a Commercial Loan Right Now?
If you need a non-prime or subprime commercial mortgage loan right now, simply complete this super-easy mini-app to me here at Blackburne & Sons.
If you need a bank-quality commercial loan right now from a life company, a commercial bank, or a conduit, you should enter your deal into C-Loans.com or our latest commercial loan portal, Commercial Mortgage.com.
The lenders on CommercialMortgage.com (3,159 commercial mortgage lenders) are different from the 750 commercial lenders on C-Loans.com.
The really hungry lenders join C-Loans.com, and using C-Loans you can actually submit your loan to 750 commercial lenders and get the ball rolling.
I'm Not a Wino, I'm Not!
Sweet Apartment Loan Program for "A" Deals
Stikkup Story (True)
Blackburne & Sons has a terrific apartment loan program for "A" quality deals. Our fixed rate is adjusted according to the desirability of the property and the area, but it starts at 3.87% and 1 point for a 30-year fully-amortized loan. For more details, please call Tom Blackburne at (574) 210-6686.
In San Francisco, a man, wanting to rob a downtown Bank of America, walked into a local branch and wrote, "this iz a stikkup. Put all your muny in this bag." While standing in line, waiting to give his note to the teller, he began to worry that someone had seen him write the note and that they might call the police before he even reached the teller window. So he left the Bank of America and crossed the street to Wells Fargo.
After waiting a few minutes in line, he handed his note to the Wells Fargo teller. She read it, noticing all of his spelling errors. She quickly surmised that he wasn't the brightest light in the harbor. Then she told him that she could not accept his stickup note because it was written on a Bank of America deposit slip, and that he would either have to fill out a Wells Fargo deposit slip or go back to Bank of America.
Looking somewhat defeated, the man said "OK" and left. The Wells Fargo teller then called the police who arrested the man a few minutes later, as he was waiting in line back at Bank of America.
We're Now Making Business Purpose Rental Home Loans in Six States
For the past 37 years, Blackburne & Sons has exclusively been a commercial lender. This has now changed. We are aggressively seeking non-owner occupied home loans in California and three other states:
- New Jersey
The property has to be non-owner occupied, and the purpose of the loan must be for business. The nice thing about business purpose home loans from Blackburne & Sons is that our loans have a 15-year term and no prepayment penalty.
Got a commercial deal nationwide or a business purpose, non-owner-occupied residential deal in one of the above four states? Please call your loan officer:
George Blackburne IV at 916-338-3232 ext. 314
NMLS # 382122
Alicia Gandy at 916-338-3232 ext. 310
NMLS # 389678
Tom Blackburne at 574-210-6686
NMLS # 1014118
Michael Young at 916-338-3232 ext. 312
NMLS # 1535540
Loans made under the California Finance Lenders Law.
True Beer Run Story
Arkansas: Seems this guy wanted some beer pretty badly. He decided that he'd just throw a cinder block through a liquor store window, grab some booze, and run. So he lifted the cinder block and heaved it over his head at the window. The cinder block bounced back and hit the would-be thief on the head, knocking him unconscious. Seems the liquor store window was made of Plexi-Glass. The whole event was caught on videotape.
Too Busy to Broker Commercial Loans to Us? Why Not Just Refer Them Instead? We Make It Easy!
We once paid a $21,250 referral fee. Here is our referral fee program.
Southwest Airlines flight attendants really have fun with their pre-flight safety announcements. So very funny. Wait for the very end.
On a Personal Note
For about half of my life, I have lived in Indiana. Over the years, I have grown somewhat used to the cold, snowy winters. I still cannot tell you whether I prefer Indiana snowfall over northern California rain, but I do know making a snowman, throwing snowballs, and a white Christmas are things I always look forward to year after year. That being said, here in Indianapolis it is currently 53 degrees in late November. Bright and sunny, with no snowfall to be found. We've experienced one of the hottest Novembers in recent history. I do not know if this is a result of rapid global warming or simply a cyclical heat front, but I fear I may not get my white Christmas this year. Please send me more deals so that I will be blissfully distracted from this unusual weather!
Don't Forget About C-Loans.com
We have a whole new crop of hungry commercial lenders on C-Loans, so if you have a commercial loan you're trying to place, it takes just four minutes to submit your deal to 750 commercial lenders. And remember, C-Loans.com is free!
Final Funny - An Oldie But a Pretty Funny
"A professor from U.C. Berkeley said we are on track for having the worst drought in 500 years. You can tell this drought is getting really bad. Today at lunch, my waiter asked if I wanted a glass of water or a future for my children. I took the water." -- Conan O'Brien
Get a Free E-Book on CREF
This free e-book contains seven of George's best blog articles on the subject of commercial real estate finance.
BRE# - 01919403
NMLS# - 1014118
BLACKBURNE & SONS REALTY CAPITAL CORPORATION
4811 Chippendale Drive, Suite 101
Sacramento, CA 95841
Phone: (574) 210-6686
Fax: (916) 338-2328